When Saying No to New Business is Good Business
Just last week a client told us about turning down a new contract. “Why?!” we asked. He shrugged and said, “I just had a feeling it wouldn’t go well.”
It got us thinking. And we had to admit he’s right. Sometimes saying no to new business is good business.
If a customer expects you to invest time and resources without any financial commitment on their end, it’s worth asking whether the relationship will be worthwhile in the long run. It might, depending on your business. But if not, cut the strings before anyone ties a knot.
If a customer asks for products or services you can’t easily provide, it’s often best to refer them to somebody else up front. Or if their request is too large for your company to handle, it’s better to turn them away than to promise more than you can deliver.
But there are also those vague areas. What if the customer doesn’t seem to share the same values as you? At what point do you draw the line? Sometimes that’s easy to answer, sometimes not. And there’s always “My gut just says no.” We all have that inner voice keeping us on track. The trick is to pay attention, and know when it’s right.
Good customer relationships are the foundation of all successful marketing. So if turning away business keeps you focused and on track for building quality relationships, it’s probably the best move.
Have you ever said no to new business? Was it a good decision? Have you ever looked back on a current relationship and wished you had said no? How has it affected your business?